Lakota Wastewater Treatment Plant

Challenge

The aging infrastructure at the Lakota Wastewater Treatment Plant
was in critical need of upgrade. Due to the inefficient, outdated
systems, the plant required twice the horsepower in aeration equipment
and was reliant upon chemical-aided treatment in order to comply with
National Pollutant Discharge Elimination System permit limits.
Lakehaven Utility District sought to upgrade its Lakota plant to
improve efficiency, reduce energy consumption and mitigate the risk of
a potential plant failure.

Solution

Financing and managing critical upgrades Trane proposed that
Lakehaven Utility District consider using the State of Washington
Design/Build Energy Savings Performance Contracting Program (ESPC),
authorized under state law and managed by the Washington State
Department of Enterprise Services, as an option to help finance its
needed upgrades. The district reviewed the proposal and, based on
Trane’s leading performance in the wastewater treatment plant industry
and positive references, selected Trane as its ESPC partner to manage
the entire upgrade process.

Performance contracting is a funding option that provides measurable
organizational results to support strategic objectives. It allowed
Lakota Wastewater Treatment Plant to use future energy and operational
savings to finance infrastructure improvements upfront. Working with
Trane, the performance contract enabled the Lakehaven Utility District
to secure a third party muni-loan at an attractive rate, allowing them
to allocate their limited capital to other areas.

Optimizing resources, maintaining project ownership

By using Trane, one of a small group of firms prequalified by the
State of Washington as a preferred energy services company (ESCO),
Lakehaven Utility District saved the time and resources required to
bid out the project. The partnership with Trane allowed the Lakehaven
Utility District to make the best use of its limited staff, while
utilizing Trane’s expertise.

The partnership also enabled the district to maintain ownership of
the project, selecting the equipment that they preferred and choosing
the contractors and consultants that best fit their needs, with a
Trane performance contract guaranteeing the cost and performance.

Reducing costs, mitigating risks

Upgrades at the Lakota Wastewater Treatment Plant
included a complete replacement and optimization of its secondary
treatment aeration system. The treatment process
evaluation/optimization maximizes energy and operational savings,
while ensuring Department of Ecology code compliance and risk
mitigation. The upgrades improve current process instability issues,
lower operational and maintenance costs, reduce power consumption, and
offset capital repairs. The improvements also allow for future
biological nutrient removal air demand to be met for future nitrogen control.

Results

Originally seeking to upgrade the outdated equipment and
infrastructure at the Lakota Wastewater Treatment over several years,
through the Energy Savings Performance Contracting Program, the
Lakehaven Utility District was able to fund the complete replacement
and optimization of its secondary treatment system aeration at one
time with the guidance of Trane and assistance through the ESPC. The
upgrades have greatly reduced the treatment plant’s risk of failure
and compliance violations.

The plant upgrade has achieved $850,000 in energy and operational
savings for the Lakehaven Utility District. The project, which
included a 30 percent reduction in chemical costs, along with a
one-time revenue grant of $602,000, delivered a positive cash flow
return to the district in less than one year.

“We’re pleased that we were able to fund critical improvements
through energy and operational savings," said Chris McCalib,
wastewater operational manager for Lakehaven Utility District. “We’re
also pleased that we could complete the project in less than a year,
and delighted that we can realize a return on our investment early on.”